Tag Archives: rem

Understanding mortgage REITs: Annaly Mortgage

Today I want to delve into a widely misunderstood part of the market – mortgage REITs. This misunderstanding creates some great opportunities for income investors to enhance returns and income without taking on much more risk. I’ll focus my discussion on the biggest and best of the mortgage REITs, Annaly Capital Management Inc, symbol NLY. Mortgage REITs are real estate investment trusts that invest in mortgages, usually through mortgage backed securities. The basic business model is the same for all of them. They invest in mortgage backed securities at a certain yield. They use leverage on their equity to fund … Continue reading

Posted in Dividends, Portfolio | Tagged , , , , , | 20 Comments